What Is Bond Laddering

question 127

Multiple Choice

What is bond laddering?

• A) Buying only long-term bonds
• B) Buying only short-term bonds
• C) Buying bonds with staggered maturity dates
• D) Combining stock and bond investments
• E) Exchanging bonds for shares of stock

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Definitions:

Private Sector

The private sector encompasses businesses and activities not owned or directly managed by the government, operating primarily through the private enterprise and market system.

Balanced Budget

A financial situation where revenues are equal to expenditures, resulting in no deficit or surplus.

Recession

A significant decline in economic activity spread across the economy, lasting more than a few months, visible in real GDP, real income, employment, industrial production.

Constitutional Amendment

A formal change or addition to a constitution, often requiring a specific process and approval to be enacted.